## Microsoft Turns to OpenAI for Chip Design Expertise
Microsoft is strategically partnering with OpenAI to accelerate it’s advancement of advanced semiconductors, acknowledging challenges in independently competing with industry leaders like Google and Amazon. Bloomberg reported on the initiative, which will grant Microsoft access to innovations stemming from OpenAI’s chip design work with Broadcom.
The collaboration allows Microsoft full access to OpenAI’s advancements in AI chip technology. According to Microsoft CEO Satya Nadella, in a recent interview with podcaster Dwarkesh Patel (watch here), the company intends to “adopt OpenAI’s designs and then extend them for Microsoft’s own purposes.”
This arrangement is formalized through a revised partnership agreement securing Microsoft intellectual property rights to OpenAI’s chip designs, alongside continued access to OpenAI’s AI models through 2032. OpenAI retains exclusive rights to develop and market any consumer hardware utilizing these chips.
The move highlights the significant hurdles and costs associated with building state-of-the-art AI chips. Rather than pursuing autonomous development with limited success, Microsoft is leveraging OpenAI’s specialized expertise and a carefully negotiated agreement to bolster its own semiconductor ambitions.
